(Closed) Anyone understand why BP stock is up?

posted 7 years ago in The Lounge
Post # 3
Hostess
18654 posts
Honey Beekeeper
  • Wedding: June 2009

Hard to ever tell with those things.  Possibly people wanted to buy into it when it was lower than it has been expecting it to go up later, or a lot of people were shorting it before and driving the price down.

The take away is that the market does crazy things that don’t always have a clear cut explanation, plus there is a lot of a herd mentality, so if the price starts going up, more people buy it because it is going up.

Post # 4
Member
1980 posts
Buzzing bee
  • Wedding: March 2014

This is a stupid guess (seeing as I know nothing about the stock market) but my reasoning is that:

BP is a huge oil supplier. BP is losing millions of gallons of oil right now. Less oil= less product to be refined = oil becomes scarcer and therefore more valuable.

The huge losses of oil that BP is dealing with right now are driving oil prices up, so BP’s stock is getting more expensive.

Post # 5
Member
2186 posts
Buzzing bee
  • Wedding: September 2010

honestly i was thinking of buying stock but now since it went up!

Post # 6
Member
2496 posts
Buzzing bee
  • Wedding: January 1991

Actually, I think it might have to do with them announcing their 20 billion dollar fund to help with the cleanup today.  Usually when companies announce something huge, their stocks fluctuate a lot.  But, I don’t really know much about all this either.

@texaslawgirl — I had thought the same thing, and then they said on one news station that even though millions of gallons of oil have been lost, that still only equals the amount of oil that the US uses in gas in 1 hour!  Isn’t that crazy? 

It’s a lot to be floating in the ocean, but apparently not a lot in comparison to what we use everyday.  I guess that’s why gas prices really haven’t gone up much, at least around in my area. 

Post # 7
Member
3762 posts
Honey bee
  • Wedding: May 2010

It also may have to do with people hedging on BP.

Post # 8
Member
3125 posts
Sugar bee
  • Wedding: December 2009

Probably because it appears that they’re putting more time into their PR campaign than fixing their HUGE PROBLEM IN THE GULF.

Post # 9
Member
5496 posts
Bee Keeper
  • Wedding: April 2010

Last night they said on the news that only about 2% has been released in the gulf and that it will take 2-4 years in total (if we don’t stop it) for all oil to be released. So, thus far, it’s only been a very, very small amount…and yet look how much damage. 🙁

Post # 10
Member
2829 posts
Sugar bee
  • Wedding: June 2011

Miss ASB & piglet have the right ideas.

Along with stock manipulation, it isnt all that surprising to me (but I am a stock market junky)..

Post # 11
Member
290 posts
Helper bee
  • Wedding: December 2011

Establishing an escrow account greatly reduces the chance of BP assets being seized and dividends kept from being paid out. BP’s credit rating has been lowered a couple of times, and concerns were that BP would have trouble getting any credit. That concern was also eased. Overall, the company’s risk went down, so its value went up. 

The well that blew was not a production well, so the amount of oil available for refining wasn’t reduced at all. Even with the huge volume of oil that’s now in the gulf, the reservoir is far from being depleted. Global production is still lower than ’08 levels, with lots of extra capacity should demand go up. OPEC has really kept the price up with limits on production.

Post # 12
Member
2376 posts
Buzzing bee
  • Wedding: December 2009

I noticed the other day their stock price shot up when they said they would be putting $$$ (can’t remember the amount, but it was in the billions) into a fund for emergency relief/repayment to families, etc.  To me it seemed like it was a good faith rally on behalf of investors…or it could be the traditional market mapiulation by the floor traders.  I swear those guys get bored and like to run the market. 

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